Taxation (Tables)

12 Months Ended

Dec. 31, 2023

Major components of tax expense (income) [abstract]

Summary of Income Tax Expense

The income tax expense of the Group is analyzed as follows:

	Year ended December 31,
	2021			2022			2023
	RMB’million			RMB’million			RMB’million
Current income tax		530			604			814
Deferred income tax (note b)		(113	)		(70	)		11
Total income tax expense		417			534			825

Summary of Reconciliation of Income Tax

The taxation on the Group’s profit before income tax differs from the theoretical amount that would arise using the tax rate of 25% for the years ended December 31, 2021, 2022 and 2023, being the tax rate of the major subsidiaries of the Group before enjoying preferential tax treatments, as follows:

	Year ended December 31,
	2021			2022			2023
	RMB’million			RMB’million			RMB’million
Profit before income tax		3,632			4,373			6,045
Tax calculated at a tax rate of 25%		908			1,093			1,511
Effects of different tax rates applicable to different subsidiaries of the Group		29			(22	)		(34	)
Effects of tax holiday on assessable profit of certain subsidiaries		(34	)	-				-
Effects of preferential tax rate on assessable profit of certain subsidiaries		(664	)		(764	)		(888	)
Expense not deductible for tax purposes		191			222			187
Income not subject to tax		(3	)	-				(1	)
Unrecognized deferred income tax assets		27			44			32
Utilization of previously unrecognized tax assets		(38	)		(33	)		(45	)
Withholding tax on earnings expected to be remitted by subsidiaries		-			-			75
Others		1			(6	)		(12	)
		417			534			825

Summary of Amount and Per Share Effect of Tax Holiday

The aggregate amount and per share effect of the tax holiday are as follows:

	Year ended December 31,
	2021		2022		2023
	RMB’million		RMB’million		RMB’million
Effects of tax holiday on assessable profit of certain subsidiaries		34		-		-
Per ordinary share effect—basic		0.01		-		-
Per ordinary share effect—diluted		0.01		-		-

Summary of Profit Before Tax

The Group’s profit before tax consists of:

	Year ended December 31,
	2021 RMB’million			2022 RMB’million		2023 RMB’million
Non-PRC		(5	)		219		311
PRC		3,637			4,154		5,734
		3,632			4,373		6,045

Summary of Deferred Tax Assets and Deferred Tax Liabilities

	As at December 31,
	2022			2023
	RMB’million			RMB’million
The deferred tax assets comprise temporary differences attributable to:
Prepayment and other investments		134			144
Deferred revenue		49			17
Accruals		159			177
Lease liabilities (note)		86			76
Others		5			13
Total deferred tax assets		433			427
Set-off of deferred tax assets pursuant to set-off provisions		(86	)		(75	)
Net deferred tax assets		347			352
The deferred tax liabilities comprise temporary differences attributable to:
Intangible assets acquired in business combinations		215			167
Right-of-use assets (note)		82			72
Withholding tax on the earnings expected to be remitted by subsidiaries		-			75
Total deferred tax liabilities		297			314
Set-off of deferred tax liabilities pursuant to set-off provisions		(86	)		(75	)
Net deferred tax liabilities		211			239

Note: prior period balances have changed to conform with current year classification.

Summary of Recovery of Deferred Income Tax

The recovery of deferred income tax:

	As at December 31,
	2022			2023
	RMB’million			RMB’million
Gross deferred tax assets:
to be recovered after more than 12 months		42			33
to be recovered within 12 months		391			394
		433			427
Set-off of deferred tax assets pursuant to set-off provisions		(86	)		(75	)
Net deferred tax assets		347			352
Gross deferred tax liabilities:
to be recovered after more than 12 months		182			139
to be recovered within 12 months		115			175
		297			314
Set-off of deferred tax liabilities pursuant to set-off provisions		(86	)		(75	)
Net deferred tax liabilities		211			239

Summary of Movements of Deferred Income Tax Assets

The movements of deferred income tax assets were as follows:

	Prepayment and other investments		Deferred revenue			Accruals		Lease  liabilities (note)			Others			Total
	RMB’million		RMB’million			RMB’million		RMB’million			RMB’million			RMB’million
At January 1, 2022		134		83			118		46			13			394
(Charged)/credited to income statement	-			(34	)		41		40			(8	)		39
At December 31, 2022		134		49			159		86			5			433
Credited/(charged) to income statement		10		(32	)		18		(10	)		8			(6	)
At December 31, 2023		144		17			177		76			13			427

Note: prior period balances have changed to conform with current year classification.

Disclosure of Movement of Deferred Income Tax Liabilities Explanatory

The movements of deferred income tax liabilities were as follows:

	Intangible assets			Right-of-use assets (note)			Withholding tax on the earnings expected to be remitted by subsidiaries		Total
	RMB’million			RMB’million			RMB’million		RMB’million
At January 1, 2022		275			44			-		319
(Credited)/charged to income statement		(69	)		38			-		(31	)
Business combinations		9			-			-		9
At December 31, 2022		215			82			-		297
(Credited)/charged to income statement		(60	)		(10	)		75		5
Business combinations		12			-			-		12
At December 31, 2023		167			72			75		314

Note: prior period balances have changed to conform with current year classification.